UN Economic Commission for Latin America and the Caribbean (ECLAC) has released a report warning that growth in regions of Latin America will see a further dip going from 4.3 percent in 2011 to 3.7 percent in 2012. Of course, not all nations are facing the same economic and political plight. The significantly complicated state of the global economic environment, in particular the deep crisis of the Eurozone, most certainly impacts this region on "the real channel - exports, prices, foreign investment, remittances, and tourism - and the financial channel". It is essential to look at the economic performance of developed nations, for a fall in activities could lead to a fall in demand for goods, thus negatively affecting regional exports and price of principal export products.
ECLAC presented some economic policy challenges that include:
- preparing for eventual deterioration of the international situation as a whole
- considering possible sudden changes and delay of the impact of macroeconomic policies
- designing a fiscal policy package for the protection of jobs
With these predictions in play, what will become of these Latin American nations?
SOURCE: UN News Centre